Investors are turning their attention to Samvardhana Motherson, a prominent player in the auto industry, as the company recently announced an impressive 50% interim dividend for its shareholders. This move has sparked interest, particularly with the dividend record date set for March 28, 2025. Shareholders who own shares by market close on March 27 will receive ₹0.50 per share. With the stock recently trading at ₹131.20, its price has rebounded significantly from a 52-week low of ₹113.10.
Samvardhana Motherson’s Market Recovery
After experiencing a notable downturn, Samvardhana Motherson’s stock price fell from its peak of ₹216.99 to around ₹113, largely due to declining earnings per share (EPS) and sales figures. Market analysts pointed out that factors such as tariff fluctuations introduced by Donald Trump contributed to the stock’s recent volatility, especially during the February 2025 stock market crash. However, experts believe that the stock is currently undervalued, indicating limited downside risk.
- Current Price: ₹131.20
- 52-week Low: ₹113.10
- Target Price: ₹160 (short-term)
Expert Insights on Stock Performance
Anshul Jain, Head of Research at Lakshmishree Investment and Securities, highlighted the significant correction in Samvardhana Motherson’s stock, stating, "The decline from ₹220 to ₹115 reflects ongoing challenges in EPS and sales performance." Meanwhile, Mahesh M Ojha from Hensex Securities noted the selling pressure linked to the recent market crash but expressed optimism about a trend reversal.
- EPS Decline: Three consecutive quarters
- Sales Drop: Two quarters
Is Now the Time to Invest?
Market sentiment suggests that Samvardhana Motherson’s stock is in an oversold position, indicating a potential for a technical rebound. With strong support around ₹120, traders might see a bounce back towards ₹150 in the near future. Analysts recommend monitoring trading volumes and overall market fundamentals before making investment decisions.
Mahesh M Ojha encourages short-term traders to consider buying shares within the ₹130 to ₹132 range, aiming for targets of ₹145 and ₹160. He suggests placing a stop-loss order at ₹124 to mitigate risks.
Historical Context of Dividends
This current interim dividend marks the first distribution for the fiscal year 2025. Prior to this, Samvardhana Motherson issued a final dividend of ₹0.80 per share, with the ex-dividend date set for August 14, 2024. In the third quarter of fiscal year 2025, the company reported a 7.66% increase in revenue, with profits soaring by 62.12%, reaching ₹878.63 crore on total revenues of ₹27,665.92 crore.
- Q3 FY25 Revenue Growth: 7.66%
- Profit Surge: 62.12%
- Operating Income Increase: 16.98%
With rising operational performance and a promising outlook, Samvardhana Motherson appears to be a noteworthy consideration for investors looking for dividend stocks in the current market landscape.
